Congress trying to 'extract a ransom'

President Barack Obama warned Monday that a government shutdown could throw a “wrench” into the recovery of the U.S. economy, and said that it’s up to Congress to prevent a shutdown from starting at midnight.

“It does not have to happen,” he said in a late afternoon statement in the White House briefing room. “All of this is entirely preventable if the House chooses to do what the Senate has already done, and that’s the simple act of funding our government without making extraneous and controversial demands in the process.”

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Obama’s comments came shortly after House Republicans indicated plans Monday afternoon to pass a government funding bill that would eliminate the Affordable Care Act’s individual mandate and cancel subsidies for certain federal employees. The measure stands little chance of clearing the Senate, since Senate Majority Leader Harry Reid (D-Nev.) has said he will not accept any changes to Obamacare as part of a funding agreement. And the Office of Management and Budget said Obama would veto the current version of the House bill if it were to reach his desk.

The House planned to vote on this latest version of a budget bill after the Senate rejected a previous House bill that would have delayed Obamacare for a year and repealed the medical device tax.

“One faction of one party in one house of Congress in one branch of government doesn’t get to shut down the entire government just to refight the results of an election,” Obama said, referring to tea party-aligned members of the House Republican caucus. “Keeping the people’s government open is not a concession to meet.”

“You don’t get to extract a ransom for doing your job, for doing what you’re supposed to be doing anyway. Or just because there’s a law there that you don’t like,” he added. “The American people sent us here to govern.”

Obama said earlier in the day Monday that he planned to speak with members of Congress, but didn’t indicate that he’d begun to do so after spending much of the day in meetings with Israeli Prime Minister Benjamin Netanyahu, who was at the White House for a pre-scheduled visit. White House press secretary Jay Carney didn’t have any new conversations to read out during his daily press briefing.

Instead, the president conveyed his message from the bully pulpit at the White House. “Congress needs to keep our government open,” he said. “It needs to pay our bills on time and never, ever threaten the full faith and credit of the United States of America. And time’s running out. My hope and expectation is that in the 11th hour once again that Congress will choose to do the right thing and that the House of Representatives in particular will choose the right thing.”

In addition to marking the start of a new fiscal year, Tuesday is also the first day of open enrollment in the health care exchanges created by the Affordable Care Act.

“No matter what Congress decides to do today,” the exchanges will open on Tuesday, Obama said. “The Affordable Care Act is moving forward. That funding is already in place. You can’t shut it down. This is a law that passed both houses of Congress, a law that bears my signature, a law that the Supreme Court upheld as constitutional, a law that voters chose not to repeal last November.”

While a shutdown wouldn’t affect the implementation of Obamacare, it would hurt the economy, the president argued.

“A shutdown will have a very real economic impact on real people, right away. Past shutdowns have disrupted the economy significantly. This one would too. It would throw a wrench into the gears of our economy at a time when those gears have gained some traction,” he said.

The federal government is the nation’s largest employer, and many of its two million employees may have to go without pay. The 1.4 million active duty members of the the military should be safe, since the House and Senate have both passed a bill that would keep paying them even if there is a shutdown.

Obama ran through a list of government functions that would continue in the event of a shutdown, as well as some that would be put on hold.

“If you’re on Social Security, you will keep receiving your checks. If you’re on Medicare, your doctor will still see you. Everyone’s mail will still be delivered, and government operations related to national security or public safety will go on,” he said. “Our troops will continue to serve with skill, honor and courage” and air traffic controllers, prison guards and border patrol agents will keep working, but without pay until the government reopens.

“Office buildings would close,” he said. “Paychecks would be delayed. Vital services that seniors and veterans, women and children, businesses and our economy depend on would be hamstrung. Business owners would see delays in raising capital, seeking infrastructure permits or rebuilding after Hurricane Sandy.”

Veterans would find less support , while national parks and monuments will be “immediately closed.”

After Obama spoke, he headed to a meeting with members of his Cabinet where they planned to discuss “the impacts, potentially, of a shutdown and how all of these various agencies will be managing to make sure the core essential functions continue,” he said at the start of the meeting.